Putting the Car(t) before the Loan

When it comes to obtaining financing for a bad credit car loan most customers would be better off turning the tables on the traditional sales process.

The first step

At Auto Credit Express, one of the most frequent questions that we get asked by bad credit car loan customers is, “Should I find a car first or should I get approved for an auto loan first?”

In most cases, the answer is simple. If you have bad credit you should get approved for an auto loan before you choose a car. There is a reason for this and all you have to do to understand why is to look at the traditional approach to selling cars that most dealerships use.

The selling process

Most dealers – especially those who have little or no experience in dealing with customers with bad credit – use the same selling process for all customers, regardless of whether or not they have good credit or bad credit. It goes something like this:

1. A sales person meets and greets the customer. 2. The sales person then determines the wants and needs of the consumer, based on a series of questions. 3. The sales person presents a vehicle, or vehicles, that fit the consumer's wants and needs. 4. The sales person takes the customer(s) on a test drive of each vehicle 5. The consumer selects a vehicle to purchase. 6. The sales person and the customer negotiate the deal and determine the price, down payment, and estimated payment 7. The customer completes a credit application in the business office and discusses any back-end dealer add-ons with the finance manager 8. The finance manager attempts to get the deal approved with a bank or finance company.

The results

This process is used in most U.S. car dealerships and it normally works very well – as long as the customer has good credit. If the customer has bad credit, though, it usually results in disappointment.

Here is what one of our bad credit car loan experts has to say about this process:

Often when I visit a dealership the sales or finance manager will hand me a stack of deals that they could not get approved. Almost as if to say “OK hot shot, let's see what you can do with these.” Most every auto loan application I review is eligible for financing, just not on the vehicle that was selected.

When this happens I'm the one that contacts the customer and breaks the news to them, it goes something like this:

“Mr. Smith, we were unable to secure financing for you on the brand new explorer, we can however, get you a loan for up to $15,000.”

The customer, more often than not, is so disappointed that they decide to shop at a different dealership. This time, however, the consumer is armed with a general price range in which they can shop. When they visit the next dealership they select a vehicle within that price range and repeat the whole process. Often, their auto loan request is once again declined. This time, however, it is declined because the dealership they chose did not have the proper inventory or lenders to accommodate their credit situation.

The solution

Although one of our special finance experts may not be in your area to help you obtain a car loan, Auto Credit Express does have a nationwide network of affiliate dealers that are experts at helping people with bad credit obtain a car loan. All of these dealers have the inventory, lenders, and technology in place to handle your specific credit situation.

At Auto Credit Express, our business is to help people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. If you have any additional questions, our web site will help you determine how much car you can afford and, unlike other sites, our toll free number is listed on every page in case you have any additional questions.

When you decide to buy a car, our credit application can be filled out in the comfort and security of your own home. For more information, visit www.autocreditexpress.com.

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